10-Q 1 form10q.htm QUARTERLY REPORT

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

☑  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

OR
☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___  to  ___.

Commission file number:  1-14323

ENTERPRISE PRODUCTS PARTNERS L.P.
(Exact Name of Registrant as Specified in Its Charter)

Delaware
  
 
76-0568219
(State or Other Jurisdiction of Incorporation or Organization)
  
 
(I.R.S. Employer Identification No.)
 
1100 Louisiana Street, 10th Floor
Houston, Texas 77002
    (Address of Principal Executive Offices, including Zip Code)
(713) 381-6500
(Registrant’s Telephone Number, including Area Code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of Each Class
Trading Symbol(s)
Name of Each Exchange On Which Registered
Common Units
EPD
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ☑  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☑   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☑
Accelerated filer ☐
Non-accelerated filer   ☐
Smaller reporting company ☐
Emerging growth company   ☐
  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes ☐   No ☑ 

There were 2,170,301,640 common units of Enterprise Products Partners L.P. outstanding at the close of business on July 31, 2024. 


ENTERPRISE PRODUCTS PARTNERS L.P.
TABLE OF CONTENTS

 
 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  

1



PART I.  FINANCIAL INFORMATION.

ITEM 1.  FINANCIAL STATEMENTS.

ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)

   
June 30,
2024
    
December 31,
2023
  
ASSETS
            
Current assets:
            
Cash and cash equivalents
  
$
138
    
$
180
  
Restricted cash
    
296
      
140
  
Accounts receivable – trade, net of allowance for credit losses
of $37 at June 30, 2024 and $35 at December 31, 2023
    
8,647
      
7,765
  
Accounts receivable – related parties
    
8
      
7
  
Inventories (see Note 3)
    
3,356
      
3,352
  
Derivative assets (see Note 13)
    
465
      
347
  
Prepaid and other current assets
    
543
      
457
  
Total current assets
    
13,453
      
12,248
  
Property, plant and equipment, net (see Note 4)
    
47,436
      
45,804
  
Investments in unconsolidated affiliates (see Note 5)
    
2,292
      
2,330
  
Intangible assets, net (see Note 6)
    
3,671
      
3,770
  
Goodwill (see Note 6)
    
5,608
      
5,608
  
Other assets
    
1,101
      
1,222
  
Total assets
  
$
73,561
    
$
70,982
  
 
                
LIABILITIES AND EQUITY
                
Current liabilities:
                
Current maturities of debt (see Note 7)
  
$
2,049
    
$
1,300
  
Accounts payable – trade
    
1,147
      
1,195
  
Accounts payable – related parties
    
109
      
199
  
Accrued product payables
    
9,859
      
8,911
  
Accrued interest
    
487
      
455
  
Derivative liabilities (see Note 13)
    
450
      
396
  
Other current liabilities
    
708
      
675
  
Total current liabilities
    
14,809
      
13,131
  
Long-term debt (see Note 7)
    
28,289
      
27,448
  
Deferred tax liabilities (see Note 15)
    
625
      
611
  
Other long-term liabilities
    
992
      
984
  
Commitments and contingent liabilities (see Note 16)
    
     
 
Redeemable preferred limited partner interests: (see Note 8)
                
    Series A cumulative convertible preferred units (“preferred units”)
        (50,502 units outstanding at June 30, 2024 and 50,412 units outstanding at
        December 31, 2023)
    
49
      
49
  
Equity: (see Note 8)
                
Partners’ equity:
                
Common limited partner interests (2,170,301,640 units issued and outstanding at
     June 30, 2024, 2,168,245,238 units issued and outstanding at December 31, 2023)
    
29,110
      
28,663
  
Treasury units, at cost
    
(1,297
)
    
(1,297
)
Accumulated other comprehensive income
    
176
      
307
  
Total partners’ equity
    
27,989
      
27,673
  
Noncontrolling interests in consolidated subsidiaries
    
808
      
1,086
  
Total equity
    
28,797
      
28,759
  
Total liabilities, preferred units, and equity
  
$
73,561
    
$
70,982
  

See Notes to Unaudited Condensed Consolidated Financial Statements.

2



ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
 (Dollars in millions, except per unit amounts)

 
  
For the Three Months
Ended June 30,
    
For the Six Months
Ended June 30,
  
 
  
2024
    
2023
    
2024
    
2023
  
Revenues:
                        
Third parties
  
$
13,472
    
$
10,638
    
$
28,217
    
$
23,069
  
Related parties
    
11
      
13
      
26
      
26
  
Total revenues (see Note 9)
    
13,483
      
10,651
      
28,243
      
23,095
  
Costs and expenses:
                                
Operating costs and expenses:
                                
Third party and other costs
    
11,400
      
8,805
      
24,011
      
19,237
  
Related parties
    
362
      
332
      
725
      
657
  
Total operating costs and expenses
    
11,762
      
9,137
      
24,736
      
19,894
  
General and administrative costs:
                                
Third party and other costs
    
17
      
18
      
44
      
41
  
Related parties
    
40
      
38
      
79
      
72
  
Total general and administrative costs
    
57
      
56
      
123
      
113
  
Total costs and expenses (see Note 10)
    
11,819
      
9,193
      
24,859
      
20,007
  
Equity in income of unconsolidated affiliates
    
101
      
121
      
203
      
225
  
Operating income
    
1,765
      
1,579
      
3,587
      
3,313
  
Other income (expense):
                                
Interest expense
    
(332
)
    
(302
)
    
(663
)
    
(616
)
Interest income
    
4
      
5
      
17
      
17
  
Other, net
    
–
      
14
      
–
      
14
  
Total other expense, net
    
(328
)
    
(283
)
    
(646
)
    
(585
)
Income before income taxes
    
1,437
      
1,296
      
2,941
      
2,728
  
Provision for income taxes (see Note 15)
    
(15
)
    
(13
)
    
(36
)
    
(23
)
Net income
    
1,422
      
1,283
      
2,905
      
2,705
  
Net income attributable to noncontrolling interests
    
(16
)
    
(29
)
    
(42
)
    
(60
)
Net income attributable to preferred units
    
(1
)
    
(1
)
    
(2
)
    
(2
)
Net income attributable to common unitholders
  
$
1,405
    
$
1,253
    
$
2,861
    
$
2,643
  
 
                                
Earnings per unit: (see Note 11)
                                
Basic earnings per common unit
  
$
0.64
    
$
0.57
    
$
1.31
    
$
1.21
  
Diluted earnings per common unit
  
$
0.64
    
$
0.57
    
$
1.30
    
$
1.20
  
















See Notes to Unaudited Condensed Consolidated Financial Statements.
3



ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED
COMPREHENSIVE INCOME
(Dollars in millions)

 
  
For the Three Months
Ended June 30,
    
For the Six Months
Ended June 30,
  
 
  
2024
    
2023
    
2024
    
2023
  
 
                        
Net income
  
$
1,422
    
$
1,283
    
$
2,905
    
$
2,705
  
Other comprehensive income (loss):
                                
Cash flow hedges: (see Note 13)
                                
Commodity hedging derivative instruments:
                                
Changes in fair value of cash flow hedges
    
79
      
46
      
(83
)
    
(43
)
Reclassification of gains to net income
    
(45
)
    
(16
)
    
(47
)
    
(48
)
Interest rate hedging derivative instruments:
                                
Changes in fair value of cash flow hedges
    
–
      
–
      
2
      
(5
)
Reclassification of gains to net income
    
(1
)
    
(3
)
    
(3
)
    
(1
)
Total cash flow hedges
    
33
      
27
      
(131
)
    
(97
)
Total other comprehensive income (loss)
    
33
      
27
      
(131
)
    
(97
)
Comprehensive income
    
1,455
      
1,310
      
2,774
      
2,608
  
Comprehensive income attributable to noncontrolling interests
    
(16
)
    
(29
)
    
(42
)
    
(60
)
Comprehensive income attributable to preferred units
    
(1
)
    
(1
)
    
(2
)
    
(2
)
Comprehensive income attributable to common unitholders
  
$
1,438
    
$
1,280
    
$
2,730
    
$
2,546
  
  




























See Notes to Unaudited Condensed Consolidated Financial Statements.

4



ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Dollars in millions)

 
  
For the Six Months
Ended June 30,
  
 
  
2024
    
2023
  
Operating activities:
            
Net income
  
$
2,905
    
$
2,705
  
Reconciliation of net income to net cash flow provided by operating activities:
                
Depreciation and accretion
    
981
      
910
  
Amortization of intangible assets
    
101
      
96
  
Amortization of major maintenance costs for reaction-based plants
    
27
      
31
  
Other amortization expense
    
118
      
106
  
Impairment of assets other than goodwill
    
24
      
16
  
Equity in income of unconsolidated affiliates
    
(203
)
    
(225
)
Distributions received from unconsolidated affiliates attributable to earnings
    
204
      
217
  
Net losses (gains) attributable to asset sales and related matters
    
5
      
(4
)
Deferred income tax expense (benefit)
    
14
      
(8
)
Change in fair market value of derivative instruments
    
(8
)
    
10
  
Non-cash expense related to long-term operating leases (see Note 16)
    
43
      
33
  
Net effect of changes in operating accounts (see Note 17)
    
(527
)
    
(403
)
Other operating activities
    
1
      
1
  
Net cash flow provided by operating activities
    
3,685
      
3,485
  
Investing activities:
                
Capital expenditures
    
(2,311
)
    
(1,433
)
Distributions received from unconsolidated affiliates attributable to the return of capital
    
39
      
30
  
Proceeds from asset sales and other matters
    
6
      
6
  
Other investing activities
    
(15
)
    
(5
)
Net cash flow used in investing activities
    
(2,281
)
    
(1,402
)
Financing activities:
                
Borrowings under debt agreements
    
38,281
      
28,595
  
Repayments of debt
    
(36,685
)
    
(28,238
)
Debt issuance costs
    
(19
)
    
(17
)
Monetization of interest rate derivative instruments
    
(29
)
    
21
  
Cash distributions paid to common unitholders (see Note 8)
    
(2,235
)
    
(2,129
)
Cash payments made in connection with distribution equivalent rights
    
(21
)
    
(19
)
Cash distributions paid to noncontrolling interests
    
(63
)
    
(81
)
Cash contributions from noncontrolling interests
    
25
      
15
  
Repurchase of common units under 2019 Buyback Program
    
(80
)
    
(92
)
Acquisition of noncontrolling interests
    
(400
)
    
(10
)
Other financing activities
    
(64
)
    
(57
)
Net cash flow used in financing activities
    
(1,290
)
    
(2,012
)
Net change in cash and cash equivalents, including restricted cash
    
114
      
71
  
Cash and cash equivalents, including restricted cash, at beginning of period
    
320
      
206
  
Cash and cash equivalents, including restricted cash, at end of period
  
$
434
    
$
277
  









See Notes to Unaudited Condensed Consolidated Financial Statements.

5



ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED EQUITY
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024
(Dollars in millions)

 
  
Partners’ Equity
              
   
Common
Limited
Partner
Interests
    
Treasury
Units
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Noncontrolling
Interests in
Consolidated
Subsidiaries
    
Total
  
For the Three Months Ended June 30, 2024:
                              
     Balance March 31, 2024
  
$
28,831
    
$
(1,297
)
  
$
143
    
$
800
    
$
28,477
  
   Net income
    
1,405
      
–
      
–
      
16
      
1,421
  
   Cash distributions paid to common unitholders
    
(1,118
)
    
–
      
–
      
–
      
(1,118
)
   Cash payments made in connection with
      distribution equivalent rights
    
(11
)
    
–
      
–
      
–
      
(11
)
   Cash distributions paid to noncontrolling interests
    
–
      
–
      
–
      
(25
)
    
(25
)
   Cash contributions from noncontrolling interests
    
–
      
–
      
–
      
17
      
17
  
   Repurchase and cancellation of common units under
      2019 Buyback Program
    
(40
)
    
–
      
–
      
–
      
(40
)
   Amortization of fair value of equity-based awards
    
44
      
–
      
–
      
–
      
44
  
   Cash flow hedges
    
–
      
–
      
33
      
–
      
33
  
   Other, net
    
(1
)
    
–
      
–
      
–
      
(1
)
     Balance, June 30, 2024
  
$
29,110
    
$
(1,297
)
  
$
176
    
$
808
    
$
28,797
  



 
  
Partners’ Equity
              
   
Common
Limited
Partner
Interests
    
Treasury
Units
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Noncontrolling
Interests in
Consolidated
Subsidiaries
    
Total
  
For the Six Months Ended June 30, 2024:
                              
     Balance, December 31, 2023
  
$
28,663
    
$
(1,297
)
  
$
307
    
$
1,086
    
$
28,759
  
   Net income
    
2,861
      
–
      
–
      
42
      
2,903
  
   Cash distributions paid to common unitholders
    
(2,235
)
    
–
      
–
      
–
      
(2,235
)
   Cash payments made in connection with
      distribution equivalent rights
    
(21
)
    
–
      
–
      
–
      
(21
)
   Cash distributions paid to noncontrolling interests
    
–
      
–
      
–
      
(63
)
    
(63
)
   Cash contributions from noncontrolling interests
    
–
      
–
      
–
      
25
      
25
  
   Repurchase and cancellation of common units under
      2019 Buyback Program
    
(80
)
    
–
      
–
      
–
      
(80
)
   Amortization of fair value of equity-based awards
    
100
      
–
      
–
      
–
      
100
  
   Acquisition of noncontrolling interests
    
(118
)
    
–
      
–
      
(282
)
    
(400
)
   Cash flow hedges
    
–
      
–
      
(131
)
    
–
      
(131
)
   Other, net
    
(60
)
    
–
      
–
      
–
      
(60
)
     Balance, June 30, 2024
  
$
29,110
    
$
(1,297
)
  
$
176
    
$
808
    
$
28,797
  













See Notes to Unaudited Condensed Consolidated Financial Statements.  For information regarding Unit History and
Accumulated Other Comprehensive Income (Loss), see Note 8.
6



ENTERPRISE PRODUCTS PARTNERS L.P.
UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED EQUITY
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023
(Dollars in millions)

 
  
Partners’ Equity
              
   
Common
Limited
Partner
Interests
    
Treasury
Units
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Noncontrolling
Interests in
Consolidated
Subsidiaries
    
Total
  
For the Three Months Ended June 30, 2023:
                              
     Balance, March 31, 2023
  
$
27,843
    
$
(1,297
)
  
$
241
    
$
1,072
    
$
27,859
  
   Net income
    
1,253
      
–
      
–
      
29
      
1,282
  
   Cash distributions paid to common unitholders
    
(1,065
)
    
–
      
–
      
–
      
(1,065
)
   Cash payments made in connection with
      distribution equivalent rights
    
(10
)
    
–
      
–
      
–
      
(10
)
   Cash distributions paid to noncontrolling interests
    
–
      
–
      
–
      
(39
)
    
(39
)
   Cash contributions from noncontrolling interests
    
–
      
–
      
–
      
11
      
11
  
   Repurchase and cancellation of common units under
      2019 Buyback Program
    
(75
)
    
–
      
–
      
–
      
(75
)
   Amortization of fair value of equity-based awards
    
44
      
–
      
–
      
–
      
44
  
   Acquisition of noncontrolling interests
    
(8
)
    
–
      
–
      
(2
)
    
(10
)
   Cash flow hedges
    
–
      
–
      
27
      
–
      
27
  
   Other, net
    
(2
)
    
–
      
–
      
–
      
(2
)
     Balance, June 30, 2023
  
$
27,980
    
$
(1,297
)
  
$
268
    
$
1,071
    
$
28,022
  



 
  
Partners’ Equity
              
   
Common
Limited
Partner
Interests
    
Treasury
Units
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Noncontrolling
Interests in
Consolidated
Subsidiaries
    
Total
  
For the Six Months Ended June 30, 2023:
                              
     Balance, December 31, 2022
  
$
27,555
    
$
(1,297
)
  
$
365
    
$
1,079
    
$
27,702
  
   Net income
    
2,643
      
–
      
–
      
60
      
2,703
  
   Cash distributions paid to common unitholders
    
(2,129
)
    
–
      
–
      
–
      
(2,129
)
   Cash payments made in connection with
      distribution equivalent rights
    
(19
)
    
–
      
–
      
–
      
(19
)
   Cash distributions paid to noncontrolling interests
    
–
      
–
      
–
      
(81
)
    
(81
)
   Cash contributions from noncontrolling interests
    
–
      
–
      
–
      
15
      
15
  
   Repurchase and cancellation of common units under
      2019 Buyback Program
    
(